Marvin Fong, an analyst from BTIG, maintained the Buy rating on Carvana Co (CVNA – Research Report). The associated price target was raised to $330.00.
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Marvin Fong’s rating is based on Carvana Co’s impressive performance across key metrics, which exceeded high expectations. The company significantly outperformed in retail units sold, surpassing consensus estimates and demonstrating robust growth compared to major competitors. Carvana’s retail gross profit per unit (GPU) and other GPU also exceeded market expectations, benefiting from favorable loan sales and improved vehicle service contract attach rates.
Additionally, Carvana’s operational efficiency improved, with a notable reduction in operational expenses per retail unit. The company’s sales conversion rate showed significant improvement, suggesting enhanced brand perception and customer experience. Carvana’s revenue and Adjusted EBITDA figures surpassed consensus, and the company has set ambitious long-term targets for unit sales and EBITDA margins. These strong financial results and growth prospects led Marvin Fong to raise the price target for Carvana’s stock, supporting his Buy rating.
Fong covers the Consumer Cyclical sector, focusing on stocks such as Mercadolibre, Carvana Co, and Etsy. According to TipRanks, Fong has an average return of -4.0% and a 39.68% success rate on recommended stocks.